With its 42.5 per cent market share, Hargreaves Lansdown (HL) is the big beast of the UK’s do-it-yourself investment platform market. Many readers of this title will be among its 1.5m clients, and some may have even read our various missives questioning the sustainability of its business model. In short, Hargreaves provides a service that is trusted by huge numbers of people, but at a price which does not always seem compelling. Is it all just a clever marketing exercise propping up margins destined to contract?
Tip style
Growth
Risk rating
Medium
Timescale
Long Term
Bull points
Strong brand in a growth market
Debt free, very cash generative
Flexible income model
Excellent client retention
Active Savings portal
Bear points
High fees, big competition
Founder share sales